Cardano’s rally has slowed down as on-chain data shows large addresses have been distributing the cryptocurrency in recent days.
Cardano Addresses With 1 Million To 100 Million ADA Have Been Selling Recently
According to an analyst on Twitter, a total of 31 addresses holding large amounts of Cardano have sold off their coins recently. The relevant indicator here is the on-chain analytics firm Santiment’s “ADA Supply Distribution,” which tells us (among other things) which wallet groups include how many addresses right now.
The “wallet groups” here define the ranges between which the number of coins that wallets belonging to them hold. For instance, the 100-1,000 coins group includes all addresses that are holding at least 100 and at most 1,000 ADA currently.
If the Supply Distribution metric is applied to this group, it will measure the total number of wallets on the network that are currently satisfying this condition.
The wallet group of interest here is the 1 million to 100 million coins group. At current prices, the lower end of this range converts to about $380,000, while the upper bound is worth around $38 million.
Since these amounts are so large, the type of investors that wallets falling inside this range would belong to are whales and sharks.
Now, here is a chart that shows the trend in the Cardano Supply Distribution for this wallet group over the past month:
Looks like the value of the metric has been trending down in recent days | Source: Ali on Twitter
As displayed in the above graph, the number of Cardano addresses belonging to the 1 million to 100 million coins group was on the rise earlier in the month. During this period, ADA started its sharp rally and the price continued to increase as this cohort’s addresses also climbed.
Whales and sharks (the holders to which these wallets belong to, as mentioned earlier) are important cohorts in the market as their moves can noticeably impact the price. The pattern seen earlier in the month would suggest that it was buying from these whales and sharks that provided fuel to the price of the crypto as it rallied.
In the last nine days or so, however, the indicator’s value has reversed its trend and has been going down instead. This means that some investors falling inside the 1 million to 100 million ADA range have been selling off their coins recently.
Since this decrease started, this cohort has lost a total of 31 addresses so far. The price of Cardano also seems to have slowed down recently, which could be because of this distribution from the whales and sharks.
For now, ADA is still overall on the up, but if these investors continue to sell their supplies, then the crypto could take a bearish turn.
At the time of writing, Cardano is trading around $0.38, up 2% in the last week.
The value of the crypto seems to have been trading sideways in the last few days | Source: ADAUSD on TradingView
Featured image from Michael Förtsch on Unsplash.com, charts from TradingView.com, Santiment.net